STAND. COM. REP. NO. 1036_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 72
                                     H.D. 2

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Finance, to which was referred H.B. No.
72, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to clarify the state campaign
spending laws concerning the voluntary expenditure limit and
public matching fund program by:

     (1)  Amending the definition of "qualifying campaign
          contribution" to mean an aggregate monetary
          contribution of $100 or less by a person during any
          matching payment period;

     (2)  Deleting the provision allowing a candidate to withdraw
          the affidavit of compliance with voluntary spending

     (3)  Changing the deadline for filing of affidavits of
          compliance with voluntary expenditure limits from
          January 31 of the election year to the time of filing
          of nomination papers with the chief elections officer
          or county clerk;

     (4)  Clarifying that expenditure limits apply to each
          primary, special, or general election;

                                 STAND. COM. REP. NO. 1036_______
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     (5)  Requiring that a candidate or committee who has
          voluntarily agreed to expenditure limits and who
          subsequently exceeds that limit notify contributors, in
          writing, within thirty days of the day on which the
          expenditure limit was exceeded;

     (6)  Amends the procedure if the Hawaii Election Campaign
          Fund is near depletion from distribution by order in
          which the affidavit is filed, to distribution by order
          in which the application for public funds is filed;

     (7)  Clarifies that maximum public matching funds available
          to any candidate is based on the maximum expenditure
          limit per election;

     (8)  Reducing the deadline for filing a qualifying campaign
          contribution statement from no later than sixty days to
          no later than thirty days after the general election;

     (9)  Increasing the time in which the initial public funds
          check must be issued from ten to twenty days from the
          date of the candidate's initial application;

    (10)  Deleting the provision that a candidate who exceeds the
          expenditure limit by no more than one percent need only
          return 25 percent of public funds; and

    (11)  Clarifying that all unspent public funds must be

     The Campaign Spending Commission and Common Cause Hawaii
testified in support of the bill.

     Your Committee has amended this bill by:

     (1)  Deleting the exemption for certain fundraising costs
          from the voluntary campaign expenditures limit; and

     (2)  Making technical, nonsubstantive amendments for style
          and clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
72, H.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 72, H.D. 2.

                                 STAND. COM. REP. NO. 1036_______
                                 Page 3

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair